Raw sugar futures settled higher on Thursday as investment fund buying inspired in part by the chance India will buy a large amount of sugar, with brokers saying the surge can easily extend into next week. The key May raw sugar contract increased 0.28 cent to settle at 13.09 cents per lb.
Moving from 12.69 to 13.11 cents. Volume traded in the May contract reached 36,809 lots at 1:56 pm EDT (1756 GMT). July sugar rose 0.25 cent to finish at 13.41 cents. Jack Scoville, an analyst for brokers the Price Group in Chicago, said the combination of India looking to book orders of sugar, fund buying, firmer crude and equity markets powered sugar.
"I actually think sugar has a chance to get back to 14 (cents)," he said. Scoville added that the rally "will probably take next week to get done." The news from India is that its government is keen to import 2.0 million tonnes of white sugar in the next six months and has sought the election commissions approval to go ahead.
The Philippines is expected to export 150,000 tonnes of sugar to Japan, Hong Kong, Dubai, Indonesia and possibly China, the head of its sugar body told Reuters. Technicians believe resistance in the May contract is at 13.30 and 13.50 cents, with support at 12.50 and 12 cents. Volume traded Wednesday in the No 11 sugar market hit 51,756 lots - exchange data.
Open interest for No 11 sugar market at 611,203 lots as of March 11, from the prior tally of 608,699 contracts. The domestic No 14 sugar contract showed the May contract down 0.11 cent at 18.77 cents at 1:57 pm volume on Wednesday in the No 14 market amounted to 343 lots - exchange data.
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